The day-to-day running costs of a business - EXPENSE, The amount the business receives for being in business - INCOME, The business owns this, has use of it, and uses it to make profit - ASSET, Amounts owed for sources of funds outside the business - LIABILITIES, The owners share of the business - EQUITY, The money, assets invested in the business by the owner - CAPITAL, Assets = Liabilities + Equity - ACCOUNTING EQUATION, Income - Expenses - PROFIT, Owner takes cash or inventory for own use - DRAWINGS, In the statement of financial position - Net Assets should be the same amount as what - CLOSING CAPITAL,

DEFINITIONS ACCOUNTING ELEMENTS

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